LORD Hanningfield has won £3,500 in damages from Essex Police for wrongful arrest.
The 72-year-old claimed his arrest for the alleged fraudulent use of his corporate credit card while leader of Essex County Council was unlawful and unnecessary.
Following two days of legal wrangling at the High Court, Mr Justice Eady ruled on Friday that the Chief Constable had failed to meet the requirements of "necessity" for a summary arrest.
But Essex Police has indicated that it could appeal the decision.
"I'm very pleased," Lord Hanningfield told the Chronicle. "It was quite traumatic going back to court and giving evidence. It brought it all back. But the decision did not surprise me. I was badly treated by the police and I'm glad justice is finally catching up with me. The police should not have been so heavy handed."
On September 14, 2011, five officers raided his bungalow in West Hanningfield at 6.45am. He had been out of prison for less than a week, after being released nine weeks into a nine-month sentence for fiddling his parliamentary expenses.
He was forced to wear an electronic tag and was subject to a night-time curfew upon his release.
The officers woke him, entered his home without a search warrant, arrested him and began to scour the property for evidence, all while Lord Hanningfield was still wearing a dressing gown.
Mr Justice Eady said: "Summary arrest was never going to have any impact on the prompt and effective investigation of Lord Hanningfield's credit card expenses.
"It is not for a judge to second guess the operational decisions of experienced police officers.
"But in the circumstances of this case I cannot accept that there was any rational basis for rejecting alternative procedures. There were simply no solid grounds to suppose that he would suddenly start to hide or destroy evidence or that he would make inappropriate contact. There was only the theoretical possibility that he might do so.
"I can therefore see no justification for bypassing all the usual statutory safe-guards involved in obtaining a warrant."
A sum of £3,500 was settled on as compensation for the arrest, search and period of detention, which lawyers for Essex Police acknowledged must be unlawful if the arrest was unlawful.
Lord Hanningfield told the court he was "traumatised" by the arrest and was close to a breakdown following his detention.
After the arrest the case was passed to the City of London Police, who dropped all charges against the former Conservative frontbencher in November last year.
This prompted Essex County Council to publish details of Lord Hanningfield's credit card spending, totalling £287,000 between 2005-2010, including £80,000 on dining out and £136,000 on overseas travel.
Lord Hanningfield called the allegations of impropriety "ridiculous" and told the Chronicle that the police were too hasty to judge him.
"I have always complied with the police but they were rather heavy handed and should have done more investigation before they rushed through my door," said the peer, who was elevated to the House of Lords in 1998.
His solicitor Mark Spragg added: "This was an important case. It reminds the police that arrests should never be made without first considering whether there is a viable alternative to depriving someone of their liberty and invading their home.
"Lord Hanningfield is not above the law but neither does he fall beneath it because of his conviction."
Shortly after the verdict Essex Police issued a statement saying they were considering appealing the decision.
The statement read: "Essex Police is disappointed with the judgement and are considering the merits of appealing the decision.
"We note that the court accepted that officers had acted in good faith and that they had honestly believed the arrest was necessary.
"The decision to arrest is never taken lightly and we recognise the right of individuals to challenge such decisions before the courts."
TIMELINE: Lord Hanningfield's 15 eventful years1998: He is given a peerage after helping to set up the Local Government Association
2001: He becomes leader of Essex County Council
February 5, 2010: He is charged with false accounting He denies the allegations but steps down from the front bench in the House of Lords and is suspended from the Conservative Party. He resigns as leader of Essex County Council
May 16, 2011: Trial regarding his parliamentary expenses begins
May 26, 2011: Found guilty of expenses fraud worth £14,000 after an eight-day trial at Chelmsford Crown Court
July 1, 2011: Jailed for nine months at Maidstone Crown Court
September 14, 2011: Arrested over allegations he made fraudulent claims while leader of Essex County Council
October 2011: It emerges he plans to sue Essex Police
November 2011: The House of Lords finds that he wrongly claimed £30,000 from the second chamber and orders him to pay money back
April 23, 2012: Returns to the House of Lords
September 26, 2012: Under Proceeds of Crime Act he is ordered to pay back £37,000. The legislation allowed prosecutors to look back six years before his charge and claim for money earned from criminal activity.
November 2012: City of London police drop their investigation into Lord Hanningfield's council expenses
November 2012: Essex County Council release details of Lord Hanningfield's credit card spending from his time as leader of the authority. It shows he spent £287,000 between 2005 and 2010, including lavish meals out
February 2013: The peer wins £3,500 damages from Essex Police for unlawful arrest